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Trust as an alternative to risk

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  • Eric Uslaner

Abstract

Many students of trust see it as a way to mitigate risk through the development of strong institutions that create trust. I offer an alternative view of trust, moralistic or generalized trust, that depends upon a psychological foundation of optimism and control. This form of trust, in contrast to arguments by Paldam and others, has “value” independent of experience. Using data from a survey of metropolitan Philadelphia in 1996, I show that if you believe that “most people can be trusted,” you are substantially more likely to see your neighborhood as safe at night even controlling for both the objective level of crime as well having been the victim of a crime, having had parents who were the victims of crime, watching local television news (which exposes people to violent events), where you live (central city and suburb), and gender. Trust thus “reduces” perceptions of risk independently of personal experience. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Eric Uslaner, 2013. "Trust as an alternative to risk," Public Choice, Springer, vol. 157(3), pages 629-639, December.
  • Handle: RePEc:kap:pubcho:v:157:y:2013:i:3:p:629-639
    DOI: 10.1007/s11127-013-0082-x
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    References listed on IDEAS

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    1. Eric M. Uslaner, 2011. "Corruption and Inequality," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(2), pages 20-24, 07.
    2. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(3), pages 811-846.
      • Glaeser, Edward Ludwig & Laibson, David I. & Scheinkman, Jose A. & Soutter, Christine L., 2000. "Measuring Trust," Scholarly Articles 4481497, Harvard University Department of Economics.
    3. Berggren, Niclas & Bjørnskov, Christian, 2011. "Is the importance of religion in daily life related to social trust? Cross-country and cross-state comparisons," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 459-480.
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    Cited by:

    1. Carin van der Cruijsen & Jakob de Haan & Ria Roerink, 2023. "Trust in financial institutions: A survey," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1214-1254, September.
    2. Magnusson, Leandro M. & Roth, Sebastian, 2024. "Trust, risk, and gender: Evidence from the Black Saturday Fires in Victoria, Australia," Journal of Economic Behavior & Organization, Elsevier, vol. 223(C), pages 21-39.
    3. Carin Cruijsen & Jakob Haan & David-Jan Jansen, 2016. "Trust and Financial Crisis Experiences," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 577-600, June.
    4. Докука С. В. & Юдкевич М. М., 2020. "Роль Доверия В Эволюции Дружбы Студентов Вуза," Вопросы образования // Educational Studies Moscow, National Research University Higher School of Economics, issue 3, pages 95-109.
    5. Aletta Sophia Tolmay, 2018. "An Investigation Into the Personal Interaction Items Which Best Explain the Variation in Trust Within Automotive Supply Chains," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 11(2), pages 77-91, April.
    6. Blanca L. Delgado-Márquez & J. Alberto Aragón-Correa & Eulogio Cordón-Pozo & Luis Enrique Pedauga, 2016. "Trust when financial implications are not the aim: the integration of sustainability into management education," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(6), pages 1172-1188, November.
    7. Sofia Dokuka & Maria Yudkevich, 2020. "The Role of Trust in the Evolution of College Friendships," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 3, pages 95-109.

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    More about this item

    Keywords

    Trust; Social capital; Risk; Z13; K42;
    All these keywords.

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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